Friday, July 23, 2010

Buyer of This Rally

After digesting the European Stress Test, which had numbers that seemed to be too good (maybe the test was not as difficult as it should have been), the market has rallied rather aggressively. The rally seems real: true buy volume, volatility index is declining, and treasuries are selling off. For these reasons, I would be a buyer this afternoon. I really like McDonald's right now. MCD (69.64 -1.76) reported this morning- EPS and revenue beat expectations but the street was looking for a little more out of the company. MCD is a consistent growth company, well run, and pays a good dividend. I say you buy on this dip. What else to buy into the close:

McDonald's (MCD): 69.69 -1.70(-2.39%)
Express Scripts (ESRX): 42.75 +0.63(+1.50%)
Teva Pharmaceutical (TEVA): 49.16 -4.81(-8.91%)

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